When someone makes a Will, they usually name beneficiaries (individuals due to receive gifts under Will) to receive money, property, or other assets from the deceased’s estate.
But what happens if a beneficiary dies while they are in the process of receiving their inheritance, or before everything has been fully distributed?
1. Dying before the Inheritance is legally entitled:
If a beneficiary dies before they become legally entitled to their inheritance, the gift may fail.
This often happens where:
- The beneficiary dies before the person who made the Will, or
- The Will includes a survivorship clause, such as requiring the beneficiary to survive the deceased by 28 days.
If the beneficiary does not meet these conditions, then the inheritance usually does not pass to them.
What happens next depends on the Will:
- Some Wills include a substitution clause, allowing the inheritance to pass to someone else (i.e the beneficiary’s children).
- If there is no substitution clause, the gift may fall into the residue of the estate and be shared among other beneficiaries.
- If there is no valid Will, the inheritance is distributed under the rules of intestacy.
2. The 28-Day Survivorship Rule
Under UK intestacy law, a beneficiary must survive the deceased by 28 days to inherit. Many Wills also include this rule.
If the beneficiary dies within those 28 days:
- They are treated as if they never inherited.
- Their estate does not usually receive the inheritance.
- The gift passes according to the Will or intestacy rules.
3. Dying after the Inheritance has become entitled:
If a beneficiary dies after they have become legally entitled to the inheritance, the position is different.
Once entitlement has arisen:
- The inheritance becomes part of the beneficiary’s own estate.
- It will be distributed according to their Will, or, if they do not have a valid Will, then under intestacy rules.
- This applies even if the money or assets have not yet been physically paid or transferred.
- It may be Probate may be required before their inheritance is released.
Suppose a beneficiary survives the deceased, meets all conditions in the Will, but dies before receiving the funds, the inheritance still forms part of their estate.
4. Inheritances held in a Trust
Sometimes, inheritances are placed in a Trust:
- Where beneficiaries are minors
- Where payments are made at certain ages
- Where income is paid over time
If a beneficiary dies while their inheritance is held in trust:
- The trust document will usually say what happens next.
- The inheritance may pass to alternative beneficiaries or revert to the estate.
- In some cases, it may pass to the beneficiary’s own estate.
5. Role of Executors (briefly)
Executor(s) must:
- Follow the terms of the Will in line with UK law and the deceased’s wishes
- Check to see if survivorship conditions apply
- Confirm whether the beneficiary was legally entitled before their death
- Distribute the inheritance accordingly
Vandna Dave is an accomplished paralegal working in the Wills & Probate department at our Camden office.
How Lewis Nedas Law Can Help?
At Lewis Nedas Law, we advise executors, beneficiaries, and families on all aspects of probate and estate administration, including complex beneficiary issues.
Our experienced team can provide clear and practical guidance to help you navigate during this difficult time and situations with sensitivity and confidence.
For tailored advice, please contact our Wills and Probate team using our enquiries page or to discuss your circumtances call 020 7387 2032.